Leap in rates for short-term fixed-rate bonds

MyPlanIQ submits:Last week painted a mixed picture for the fixed income market, with high yields and international inflation protected bonds again claiming the top two spots in our trend table. Long term government bonds and munis lagged the broader market. We think two major themes—durational risks of long term government bonds, inflation pressures in emerging markets—are in focus and would offer investors insights on how to navigate the bond market.

  After markets closed on Friday, it was announced that Cyprus worked out a deal with the European Central Bank, European Commission, and the International Monetary Fund (“the Troika”). Here is a typical article reporting on the story.

The non-news of the day is Bernanke says scope for more Fed easing Federal Reserve Chairman Ben Bernanke says there’s room for the central bank to take more action in responding to critical questions from a top lawmaker on Capitol Hill.

Bruce Vanderveen submits:Bonds, especially Treasuries and municipal bonds (munis), are a major component of American retirement portfolios, be it pensions, IRAs, annuities, or mutual funds.The recent sharp fall in bond prices, which started last November, has sent tremors through fixed income markets. With an apparent end to the 30 year old bull market in bonds, it may be time to look at alternatives.How Safe Are Treasury and Municipal Bonds?

By Michael Johnston:State Street has made another addition to its fixed income ETF lineup, recently rolling out the SPDR Barclays Capital Short Term HighYield Bond ETF (SJNK).

Dividend Growth Investor submits:Yields on fixed income instruments have been in a decline over the past 30 years. While yields on long term obligations were in the mid to high teens in the early 1980’s due to higher inflation, they have come down quite a bit in the early 2010’s to some of the lowest levels in US history. As a result, certain cash deposits such as Certificates of Deposits or Treasury Bills yield less than half a percent.